06/06/2019

House May Vote to Repeal Cadillac Tax

The bill allegedly has strong bipartisan support

The House may schedule a vote soon to repeal the so-called Cadillac tax on high-cost employer-sponsored health plans that was part of the Affordable Care Act (ACA).

More than two-thirds of the House has signed on to a repeal bill (H.R. 748), and its lead sponsor, Rep. Joe Courtney (D-CT), has filed a motion to schedule a vote given the overwhelming bipartisan support. Speaker Nancy Pelosi (D-CA) could either call for an expedited floor vote or route the bill through the House Rules Committee, but supporters of Cadillac tax repeal hope to have a floor vote before the August recess.

The 40 percent tax on employer-provided coverage has never actually gone into effect, having been suspended initially until 2020 and then further delayed until 2022 as part of a government funding bill passed by Congress at the beginning of 2018.

Many organizations representing a broad range of industries and interests, ASAE included, have advocated in favor of doing away with the tax entirely.

“My legislation to repeal the 40 percent tax has wide and unified support from a range of stakeholders, patient groups, employers and labor organizations,” Courtney said. “It’s my belief that the legislation will receive the same broad support in this Congress and that we will scrap the Cadillac tax once and for all.”

This article was provided to OSAE by the Power of A and ASAE's Inroads.